Investing in fixed deposits (FDs) is considered to be one of the best ways to get guaranteed low-risk returns. They offer a steady stream of income to retirees. Moreover, the repo rate hikes by the Reserve Bank of India in the past few months has also turned out to be beneficial for term deposits since banks have been raising the interest rate on these deposits in line with the central bank’s increase in the repo rate. The latest to join the list is the State Bank of India (SBI), which has hiked its FD interest rates by up to 65 bps on deposits of various tenures. The new rates came into effect today, 13 December, and applicable on deposits below Rs 2 crore. SBI has raised the interest rate on fixed deposits from 25 to 65 basis points (bps).
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SBI December 2022 FD rates:
Now, term deposits maturing in seven to 45 days will give 3 percent interest. SBI is offering 4.5 percent return on FDs maturing in 46-179 days. Deposits with tenure of 180 days to less than 210 days will earn 5.25 percent interest. The bank has raised the interest rate by 25 bps to 5.75 percent on deposits maturing in 211 days to less than a year. The rate has been hiked by 65 bps to 6.75 percent for term deposits with a tenure of one year to less than two years.
The interest rate has been raised to 6.75 percent from 6.25 percent on deposits maturing between two years to less than three years. The bank is offering 6.25 percent return on FDs maturing between three years to less than five years. SBI has raised the interest rate to 6.25 percent from 6.1 percent on deposits with a tenure of five years to up to 10 years.
SBI FD rates for senior citizens:
SBI is offering interest from 3.5-7.25 percent to senior citizens on term deposits ranging from seven days to 10 years.
